Learn Chinese

I downloaded a free application called "1000 Chinese characters" into my Android phone. It is the best document that I have encountered over the years, in my continuing desire to improve my Chinese. As it focused on the most common 1,000 characters, it is fun to learn.

For those struggling to learn Chinese, I recommend that they download this application (which may be available in other phone platforms, or buy a hard copy book (which I believe must be available).

Yellow Bridge.

TKL Website [7]

The FAQs on insurance and investments in my website, www.tankinlian.com,  is expanding quite rapidly, as many more documents are being added. If you find it difficult to read the entire list, you can use the Search function as follows:

• Enter a keyword, such as "blue chip" or "critical illness" or "education" or "child"
• A list of documents with this keyword in the title or description will be displayed
• You can see if any of these documents interest you
• If not, try another keyword.
• When you find your document, click on "View" to read the PDF document. You can save it in your computer for offline reading or to print out.

Try it. 

www.tankinlian.com

www.tankinlian.com/ask.aspx

SAF Group Insurance

Is it advisable to be insured under the SAF Group Insurance? I have given my views in my website, www.tankinlian.com (click on Ask Mr. Tan). You can also read the SAF Group Insurance brochure that gives more details of the coverage, terms and condition. You can get similar coverage under other group insurance policies, as explained in the FAQ.

Tan Kin Lian

Marketed Financial Products

When a marketing person approaches you to invest in a financial product, you have to be careful. Here is the reason.

You can also read the other FAQs in my website, www.tankinlian.com/ask.aspx

Read
Practical Guide on Financial Planning

Blue chip shares

Read about blue chip shares here
Investor Buddy
About.com

Blue chips are large, well managed companies that have a long history of giving good dividends to their shareholders. They are usually the companies that are selected to form the stock market index. Examples of blue chip shares in Singapore are Singapore Airlines, the three local banks, Singapore Press Holdings, SMRT, Singtel, Starhub, the large property companies and shipyards.

In the past, the asset mangers expect a yield of 7% to 10% on these blue chip shares. If a small investor were to buy into the shares at the market price, the expected yield is at this level, comprising of dividend (around 3%) and capital appreciation. There is volatility, i.e. the share price can go up or down by a large margin, but over the long term, this is averaged out to give a yield of expected long term yield.

Some blue chip shares can go bust, but the risk is much lower than the speculative or smaller shares in the stock market. You can diversify the risk by investing in an exchange traded fund (such as the STI ETF). In other countries, you can invest in an indexed fund (i.e. a unit trust that is invested in the stocks comprising the stock market index) but this is not available in Singapore.

Read the FAQ about investing in blue chip shares in www.tankinlian.com (Ask Mr. Tan)

Tan Kin Lian

Invest in Preference Shares

A consumer asked for my views about a 5 year single premium product that pays a guaranteed yield of 2% p.a. or 10% for 5 years. The investment showed an immediate 10% loss during the first year, a smaller loss during the next two years and will only produce the gain of 10% on maturity at the end of 5 years. I advised the consumer against this type of investment, as it locks up the money for 5 years and only gives a modest return.

I did some research on preference shares and REITS and have posted several articles in this blog. I have also written a FAQ on "investing in preference shares", which is posted in my website, www.tankinlian.com (click on Ask Mr. Tan). The preference shares issued by the local banks give a yield of 4.2% to 5.9% and should be relative safe.

Tan Kin Lian